In the report, Morgan Stanley noted, “Upside in the quarter was driven by growth in MCUs, while analog cooled a bit following a strong Q4. Excluding contribution from the Supertex acquisition, sales were guided roughly 1% below the Street. EPS guidance of $0.66 is in line, but includes $0.01 in accretion from Supertex. In MCUs, we see significantly greater operating leverage at Atmel to the gradually improving semi-cycle (19 points below peak OM vs. 3.5 points for Microchip), as well as optionality around M&A value and buybacks.”